UK division delivers construction revenue of £1.1bn, but focus turns to rail, waste, roads and energy
BAM UK’s construction division recorded its highest ever turnover in 2009, but the company said it would focus on civils work as public spending cuts take hold.
BAM UK, which includes BAM Construct UK, civil engineering firm BAM Nuttall and BAM PPP, posted turnover of £1.8bn (2008: £1.75bn) and a pre-tax profit of £49m (£94m). Of that, BAM Construct UK posted turnover of £1.1bn (£1bn) and pre-tax profit of £30m (£52m).
But the Dutch-owned group is braced for public spending cuts. A statement said: “The board is very aware of the effect that a restraint in public expenditure will have on the construction industry over the next few years … Rail, waste, highways and energy markets will remain our primary focus.”
Highlights for BAM Construct UK included winning the Milton Keynes national rail centre contract and being selected as preferred bidder for Somerset’s Building Schools for the Future programme. It also completed Webb House offices in Camden, London (pictured).
Graham Cash, chief executive of BAM Construct UK, said: “Nobody expects 2011 to be easy. Our strategy will be to enhance our expertise and delivery, perform well on our frameworks and encourage our private sector clients back to the market.”
The group’s civils division, BAM Nuttall, recorded a turnover of £644m (£650m) and a pre-tax profit of £24m (£28m).
Its recent wins include a £700m deal to redevelop Victoria tube station and a £500m deal to redevelop Tottenham Court Road station, both in a joint venture with Vinci’s Taylor Woodrow subsidiary.